I am calling cache.stop() followed by cachemanager.stop(). What will teh effect of this be on other Vm instances running in the cluster. Will the distibuted cache(mode=distribution with 3 replicas) be deleted in all nodes ?
That does not "delete" the cache instance. It only takes this node out out of the clusters. The cache still runs on the remaining nodes, and as long as there are at least 3 caches running in the cluster then your data has 3 replicas.